What is the difference between packaged applications and custom applications?
A packaged application is a standardized application designed to appeal to a whole segment of companies (the "customers") with the intent to get sold “as they are” to customers in the target segment. It is presented in a fully functional, packaged form on the SAP App Center or as a packaged cloud-service including the embedded SAP HANA Cloud Platform to be licensed by customers typically for a combination of license- and maintenance fee or a subscription fee.
During implementation for a specific customer it may be configured and tailored to meet customer preferences, but in contrast to a custom-developed application, it is not built specifically to the needs and environment of an individual customer. As a result a packaged application will in the majority of cases dramatically reduce the total cost of ownership (TCO) for the customer.